Editorial | Chan right to remain cautious on Hong Kong property
- While the real estate sector has been lobbying for a relaxation of market cooling measures, now is not the time for big policy changes
When it comes to promoting home ownership and avoiding overheating the real estate market, it is a delicate balancing act. As both are policy priorities, finance chief Paul Chan Mo-po has his work cut out.
Chan says he will consider letting first-time homebuyers borrow more money for a mortgage, but will not be lifting property cooling measures, including lowering stamp duties. He understands the imperative to avoid letting flat prices soar while making sure they do not fall precipitously either.
This is especially so in a city where half the population own their homes, which are also for many their most important asset, the place where they have invested their life savings.
Unsurprisingly, the powerful property sector and lawmakers who represent its interests have been lobbying for a relaxation of the cooling measures. But its demands are broad-based and would mean rolling back long-standing measures.
Their ramifications for the market could be great. Chan is therefore right to be cautious.